A and B invest in a business with A investing $25,000 and B investing $35,000. I

A and B invest in a business with A investing $25,000 and B investing $35,000. If the total profit is $50,000, how much does A receive?

A and B invest in a business with A investing $25,000 and B investing $35,000. If the total profit is $50,000, how much does A receive?

Correct Answer: $20,000

Step 1: Identify the amount A invested, which is $25,000.
Step 2: Identify the amount B invested, which is $35,000.
Step 3: Calculate the total investment by adding A's and B's investments: 25000 + 35000 = 60000.
Step 4: Calculate A's share of the total investment by dividing A's investment by the total investment: 25000 / 60000.
Step 5: Multiply A's share by the total profit to find out how much A receives: (25000 / 60000) * 50000.
Step 6: Calculate the result of the multiplication to find A's profit: 25000 / 60000 = 0.4167, then 0.4167 * 50000 = 20833.33.
Step 7: Round the result to the nearest dollar if necessary, which gives A approximately $20,000.

Profit Sharing – Understanding how profits are distributed based on the proportion of investment.
Ratio Calculation – Calculating shares based on the ratio of individual investments to total investments.